Adani Group is required to establish financial capability to receive Letter of Intent for Dharavi redevelopment bid

On Tuesday, Maharashtra Deputy Chief Minister Devendra Fadnavis stated that the Adani Group, which won the bid for Dharavi’s redevelopment, will only receive a Letter of Intent (LoI) once they have established their financial capability to undertake the project.

This statement was made in response to Congress MLA Varsha Gaikwad‘s concerns about the project’s future, following allegations of stock manipulation against the Adani Group made by Hindenburg Research.

Gaikwad asked if a new tender would be issued for the project, but Fadnavis defended the tendering process, stating that it was transparent and that the highest bidder was awarded the contract. The LoI will only be awarded after all departments have given their approval, including the Urban Development department, which has yet to make a decision, he added.

In November 2021, the Adani Group won the bid for the 259-hectare Dharavi Redevelopment Project with a bid of Rs 5,069 crore, beating DLF’s offer of Rs 2,025 crore. Fadnavis stated that the winning company must prove its financial capability and deposit a certain amount in a dedicated account before the LoI is issued.

Dharavi is located in central Mumbai and is known as Asia’s largest slum cluster, as well as a hub of small-scale, unorganized industries producing leather goods, footwear, clothing and other items.

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